Newsletter #85 - Fashion and resale industry in Asia

Why is secondhand fashion becoming popular?

The fashion industry had its ups and downs in the pandemic, but one category flourished: resale. Resale platforms like Thredup and Vestiaire are seeing astonishing growth—the resale market is growing at a rate 11 times faster than traditional retail and should be worth $84 billion by 2030.

This week, we look at the threads of impact that resale has on the fashion industry.

Stay stylish,

Team NC

🕶️Resale: fashion industry’s new mindset

#TRENDS

Luxury fashion resale takes off in Asia [SCMP]

A fading social stigma - Celebrities such as Crazy Rich Asians actress Fiona Xie are helping turn pre-owned fashion from socially unacceptable to almost collectible. She partnered with the luxury resale site Vestiaire to sell luxury items from her personal wardrobe for charity.

Obstacles in Asian expansion - Product authenticity is a big challenge for Asian resellers, since China, Hong Kong and Singapore account for two-thirds of global counterfeit exports. To combat this, sellers have gotten wise to keep proof of purchase, by saving the original packaging and receipts.

#BUSINESS

Luxury brands reluctant to join resale market boom [WWD]

Not joining the bandwagon - Despite the trend, some luxury brands are reluctant to take ownership of the resale process, fearing that it could cannibalise sales of their full-price products and dent their image of exclusivity. Others are put off by the complexity of implementing circular models, and doubt its financial viability.

Quality control from third parties - Yet most luxury brands that got involved in the secondhand market have done so with the help of a third party. Mytheresa, Mulberry and Alexander McQueen, for instance, have all launched resale pilots this year in partnership with Vestiaire Collective that can help with sustainability and quality control.

#TECH

China is using blockchain to save the resale market [Vogue]

An evolutionary war on counterfeit goods - Luxury reselling platforms, despite their in-house teams of authenticators, have seen an increase in sophisticated counterfeiting technology.

Using blockchain to build trust - As in the West, blockchain technology is seen as a more promising solution in China to increase customer trust. But even as some say that human interventions are still better than a computer’s, Secoo, a Chinese luxury reseller and retailer, is looking at blockchain tech to trace a luxury item’s source to check its authenticity.

🧐 Handpicked reads for the week

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